A significant surge in the global demand for health insurance across the world’s emerging economies offers “the most significant market and ESG opportunity in decades” for insurers, according to the international body representing the global microinsurance sector.
The findings of the Microinsurance Network’s Landscape of Microinsurance Study 2021 suggest that the COVID-19 pandemic has led to growing demand for health insurance for low-income communities.
The report shows up to 377 million people are now covered by a microinsurance product in the 30 countries included in the data, with health by far the most popular product.
The growth in health microinsurance has also been supported by a range of new services to support customers’ changing needs and ability to access and pay for products, including health education and telemedicine.
There has also been a rise in digital platforms, such as ride-hailing applications and e-commerce platforms, delivering health insurance and reaching millions of new clients with coverage which can be bundled with existing services.
“The report shows the huge impact COVID-19 has had on insurers and low-income communities as the pandemic has heightened awareness of the risk of not being insured, driving up significant demand for health insurance,” said Katharine Pulvermacher, executive director of the Microinsurance Network. “This shift presents the biggest opportunity for the sector in decades.”
“Whilst for many years, life insurance has been the starter product for insurance providers moving into the inclusive insurance market, we can see this has now been taken over by health policies in many countries, presenting a huge opportunity for insurers looking to enter the sector.”
Luxembourg’s Minister for Development Cooperation and Humanitarian Affairs, Franz Fayot also commented: “The COVID-19 pandemic has laid bare the real need for health insurance in emerging markets across the world, and the impact inclusive insurance products can have for those who still have little social protection in their communities.”
“It is important we continue to monitor the changing face of the microinsurance landscape and look at new ways we can continue to support developing countries as we move towards improving resilience for all.”
Garance Wattez-Richard, Head of AXA Emerging Customers and a member of the Microinsurance Network, added: “The 2021 Landscape of Microinsurance is a call to action for the sector to make protection more accessible, affordable and relevant to those who need it the most. I invite insurers, large and small, local and international, experts and newcomers in inclusive insurance, to not only read this report but to also take part in the next edition of this annual barometer to obtain an ever more comprehensive landscape.”
